If total cost at Q = 0 is $100 and total cost at Q = 10 is $500, then average variable cost at Q = 10 is
A)$500
B)$400
C)$50
D)$40
E)$10

Name: If total cost at Q = 0 is $100 and total cost at Q = 10 is $500, then average variable cost at Q = 10 is A)$500 B)$400 C)$50 D)$40 E)$10
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Total variable cost at Q = 10 is:

TVC = TC at Q = 10 - TC at Q = 0 = $500 - $100 = $400

Therefore, average variable cost at Q = 10 is:

AVC = TVC / Q = $400 / 10 = $40.

So, the correct answer is D.

If Total Cost at Q = 0 Is $100 and Total